Mount Sinai Medical Center, Miami Beach, Fla., acquired 278-bed Miami Heart Institute and Medical Center from Nashville-based HCA-The Healthcare Co. Mount Sinai bought Miami Heart for about $75 million, according to a ratings report from Standard & Poor's. Last week, the New York-based credit-rating agency lowered Mount Sinai's rating on about $95 million in debt to BBB- from BBB.
Adventist Health System, Winter Park, Fla., completed its $62.2 million acquisition of 339-bed Winter Park Memorial Hospital from HCA-The Healthcare Co., Nashville. Winter Park Memorial has been owned since 1994 by a joint venture of HCA and not-for-profit Winter Park Health Foundation. In a nearly simultaneous transaction with the sale to Adventist, HCA bought the foundation's interest in the hospital for $47.2 million.
MedStar Health, Columbia, Md., completed its purchase of the clinical operations of Georgetown University Medical Center, Washington. Under final terms of the deal, MedStar paid $95 million in return for a long-term lease on the Georgetown clinical enterprises, which include the 535-bed hospital, a community physician network and a faculty practice, along with two medical office buildings and a parking lot. MedStar also assumed $80 million in debt accrued by Georgetown. Georgetown's academic functions remain part of the university.
Health Management Associates, Naples, Fla., completed its acquisition of 256-bed St. Joseph Hospital, Lancaster, Pa., from Catholic Health Initiatives, Denver, for undisclosed terms. HMA now owns two of Lancaster's three hospitals and controls 43% of its acute-care beds. HMA also owns 116-bed Community Hospital of Lancaster.
Central Indiana Health Systems assumed ownership of 27-bed Randolph County Hospital and Health Services, Winchester, Ind. The hospital has been renamed St. Vincent Randolph Hospital. Officials said that to continue providing patients quality healthcare, a new replacement hospital will be built, at a cost of $16 million. Indianapolis-based CIHS is the regional holding company of St. Louis-based Ascension Health. CIHS' flagship, 621-bed St. Vincent Hospitals and Health Services, also in Indianapolis, had managed the Randolph County facility for 18 months (Sept. 20, 1999, p. 19).
Doctors Community Healthcare Corp., a Scottsdale, Ariz.-based for-profit hospital chain, and a group of physicians in Des Moines, Iowa, completed their acquisition of 155-bed Des Moines General Hospital for undisclosed terms. The sale makes the facility Iowa's lone for-profit hospital (March 6, p. 4).
Catholic Healthcare West affiliate Mercy Healthcare closed 95-bed Mercy American River Hospital, one of two hospitals that Mercy Healthcare owns in Carmichael, Calif. Mercy Healthcare announced in April that it would close the hospital. Mercy American lost $3.1 million in fiscal 1999, and occupancy hovered at about 30%. Officials said closing the hospital would save about $2 million per year. Mercy San Juan Hospital, Mercy's Healthcare's 245-bed facility in Carmichael, will absorb Mercy American's patients.